When you file an insurance claim, you expect your insurer to handle it fairly and promptly. Unfortunately, that’s not always what happens. Many Texas policyholders—homeowners, drivers, and business owners alike—find their valid claims stuck in limbo or outright denied without explanation.
If you’ve received endless requests for paperwork, vague responses, or a suspiciously low offer, you’re not alone. Insurance companies often use delay tactics to protect their profits at your expense. But Texas law protects you from these unfair practices.
In this guide, the attorneys at The Law Offices of Colby Lewis explain why insurers delay or deny claims, when it becomes bad faith, and what you can do to fight back.
Why Insurers Delay or Deny Valid Claims
Insurance companies are businesses. The less they pay out, the more profit they keep. To protect their bottom line, many insurers rely on systematic strategies to minimize or postpone payments—even when liability is clear.
Some of the most common reasons insurers delay or deny valid claims include:
- “Pending investigation” excuses: Insurers may claim they need more time to review your file, even when they already have the necessary information.
- Repetitive documentation requests: Asking for the same records multiple times is a classic stall tactic.
- Misinterpreting policy language: Companies often cite exclusions or limitations that don’t apply to your situation.
- Lowball settlement offers: After delaying the process, insurers count on you being desperate enough to accept far less than your claim is worth.
While some delays can be legitimate, consistent or unexplained stalling often signals bad faith behavior.
Common Delay Tactics Used by Insurance Companies
At The Law Offices of Colby Lewis, we’ve seen firsthand how insurers drag their feet to discourage claimants. Here are several red flags that suggest the delay isn’t just bureaucratic—it’s strategic:
1. Endless Requests for Paperwork
Your insurer already has your claim form, receipts, and photos, but now they’re asking for additional documentation that seems irrelevant. This tactic is meant to wear you down until you abandon your claim or accept a lower offer.
2. “We’re Still Investigating”
The company keeps telling you they’re reviewing your case but can’t give a timeline for resolution. In Texas, the Prompt Payment of Claims Act requires insurers to acknowledge and decide claims within specific timeframes. Unnecessary delays may violate that law.
3. Shifting Blame
Some insurers suggest you caused the damage yourself or failed to mitigate losses, even without evidence. This approach shifts the burden to you and delays payment indefinitely.
4. Low Offers After Long Waits
After months of delay, the insurer finally presents an offer that’s far below your actual losses. They’re banking on your frustration and financial pressure to close the claim cheaply.
When a Delay Crosses Into Bad Faith
Under Texas Insurance Code §541, insurance companies are prohibited from acting in bad faith—that is, using unfair or deceptive practices in handling claims.
A delay becomes bad faith when it’s unreasonable or when the insurer fails to act honestly and fairly toward its policyholder. Common examples include:
- Ignoring evidence that supports your claim
- Misrepresenting policy terms or coverage
- Failing to investigate in a timely manner
- Refusing to provide written reasons for denial
- Making misleading or false statements about your rights
If your insurer engages in these practices, you may be entitled to recover not only your policy benefits but also additional damages, such as penalties, interest, and attorney’s fees.
At The Law Offices of Colby Lewis, we hold insurance companies accountable when they act in bad faith. Our team carefully documents every step of the claims process to expose unlawful delays and recover full compensation for our clients.
Steps to Take if Your Claim Is Delayed or Denied
You don’t have to face your insurer alone. Here’s what you can do to protect yourself and strengthen your position:
Document Everything
Keep detailed notes of every phone call, email, and letter you send or receive. Documentation can be crucial evidence in a bad faith case.
Request a Written Explanation
Texas law requires insurers to provide a written reason for any denial or delay. If they fail to do so, that’s a major red flag.
Avoid Signing Anything Without Review
Some insurers include waivers or releases in settlement documents. Always let an attorney review paperwork before signing.
Consult a Texas Bad Faith Insurance Lawyer
An experienced attorney can evaluate your situation, communicate directly with the insurer, and file suit if necessary to force compliance.
How The Law Offices of Colby Lewis Law Helps Policyholders Hold Insurers Accountable
At The Law Offices of Colby Lewis, we focus on helping Texans get the insurance benefits they’ve paid for. Whether your claim involves storm damage, auto insurance, or business loss, we take an aggressive approach to ensure your insurer upholds its obligations.
Our process includes:
- Reviewing your policy and correspondence to identify violations of Texas insurance law
- Gathering evidence to prove unreasonable delays or false denials
- Negotiating directly with insurers for a fair payout
- Filing lawsuits when the company refuses to act in good faith
Our team has helped clients recover full policy benefits plus additional damages for bad faith conduct. We know the tactics insurers use—and how to counter them.
Protect Your Rights After an Insurance Denial
Delays and denials are not just frustrating—they can be financially devastating. The longer your claim drags on, the more leverage your insurer gains. Don’t give them that advantage.
If your claim has been delayed, denied, or underpaid, take action now. Texas law imposes strict deadlines for filing bad faith insurance claims, so time matters.
Free Consultation with The Law Offices of Colby Lewis
At The Law Offices of Colby Lewis, we stand up to powerful insurance companies on behalf of everyday Texans. We’ll review your claim, explain your legal options, and help you get the compensation you deserve.
Contact us today for a free consultation.
Disclaimer:
The information provided in this post is intended for general informational purposes only and may not reflect the current law in your jurisdiction. It is not a substitute for personalized legal advice. Readers are advised to seek professional legal counsel regarding their specific circumstances.
